Why is capital formation important in economic growth, Microeconomics

Assignment Help:

Capital make large scale production and greater degree of specialization possible. Thus with capital accumulation the advantages of large scale production and specializations are obtained. The advantage of large scale production and specialization is that they greatly increase output and productivity and there by brig done the cost of production per unit. Without adequate capital accumulation neither the scale of production can be neither increased nor greater specialization and division of labour in the production process is possible. Hence capital accumulation by increasing the scale of production and specialization increases the production and productivity in the economy and thereby promotes economy’s growth.


Related Discussions:- Why is capital formation important in economic growth

Structure of the imf, Structure of the IMF: The Central office of the ...

Structure of the IMF: The Central office of the IMF is in Washington DC, USA. It has 184 members. It is affiliated to the UNO. The highest authority of the IMF is the Board of

Estimation based on the probit model, Let {(y i ; x i ); 1 ≤ i ≤ n} be an i...

Let {(y i ; x i ); 1 ≤ i ≤ n} be an i.i.d sequence of random variables where yi and xi satisfy the linear relationship y i = β 0 + β 1 x i + ∈ i with Cov(x i ; ∈ i ) = 0

Labor economics, Suppose that Congress increases the minimum wage to $10 an...

Suppose that Congress increases the minimum wage to $10 an hour. a. Use a supply and demand model for unskilled labor to show the effect on the number of unskilled workers employed

Total cost function, A firm's production function is given by Q = √LK . Th...

A firm's production function is given by Q = √LK . The price of labour is w and the price of capital is r. a. The price of labour is $5 and the price of capital is $20. What is

Physical chemistry, Calculate the enthalpy change for stepE. that is for th...

Calculate the enthalpy change for stepE. that is for the reaction: Na(s)+ water (arrow) Na(ion)+ OH(ion)+ Hydrogen (g)

Neutron diffraction, chemistry assignments ,  Neutron diffraction supplemen...

chemistry assignments ,  Neutron diffraction supplements x-ray diffraction and is particularly helpful in locating hydrogen atoms. An x-ray beam is scattered primarily as a result

Theory, who propounded the pure international theory of trade?

who propounded the pure international theory of trade?

Functions and resources of the world bank, Functions and Resources of the B...

Functions and Resources of the Bank  The main functions of the Bank are as follows: •  to assist in reconstruction and development of the territories of it member-governmen

HELP, Suppose Jean Splicer, an investor, buys $300,000 of shares of stock i...

Suppose Jean Splicer, an investor, buys $300,000 of shares of stock in a diversified bundle of Bio-tech firms and exactly one year later sells those shares for $315,000. Assume the

The market system, why is normal rate of return on capital included in the ...

why is normal rate of return on capital included in the total cost and what implication does it have

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd